The collateral for this loan is 2.63 acres of land located on the Southeast corner of Charleston Blvd and Maryland Pkwy near the heart of downtown Las Vegas, NV. On the land is a 28,620 square foot building that has been part of an ongoing litigation for many years. Originally built in 1944, the property (commonly known as the Huntridge Theater) has not been in operations since 2004 due to ongoing litigation between the current owner and the city. Since the property was listed on the National Register of Historic Places in 1993, the city’s involvement became too much for the current owner to handle. The city put a lien on the property given the numerous code violations which has scared away many potential suiters for the project. Our borrower, Dapper Companies, has already worked with the city to have the liens removed as part of the closing. This alone will unlock tremendous value since any new buyer would not have this burden. Over the next year, the borrower will work to get building permits and leases signed. Once this is completed, this loan will be paid off with a construction loan.
Loan Amount: $2,600,000
Yield: 10.5% (Principal Balance ≥ $100,000); 10.0% (Principal Balance < $100,000) Interest is paid monthly in arrears with payments due on the 1st of each month with a 10-day grace period.
Term: Nine months with an optional nine-month extension at maturity.